Good morning from Germany!
After a very short night of watching the meeting, with prices just falling and wild theories sprouting, there are only two reasons why theprices of many lithium producers or their shares have fallen.
1. the statement of Federal Reserve Governor Christopher Waller.In which from his side the speech is that one should not go now from the gas pedal, which concerns the interest increases, otherwise one could be surprised by further rises of the inflation.Dr. Waller said the Fed knew it was facing a challenge and said it was not easing its stance even though it signaled it would slow the pace of rate increases from 75 basis points to 50 basis points."I can't speak for the chairman, but when I looked at the press conference, that was the signal - to stop paying attention to the pace and start paying attention to where the end point is going to be."Dr. Waller said real interest rates are still relatively low, and referred to policy models such as the Taylor rule, which would suggest that the Fed funds rate should be about 6 to 7 percent.
2. the exit of hedghe funds.From the 13F reports filed overnight in the U.S., it appears that many hedge funds have reduced their investments in some lithium companies. It looks like profit taking that may be causing some of the other insto funds to take money off the table.
And then there is our alliance of rumor mongers consisting of Goldman Sachs and Credit Suiss, who have been tooting the same horn.
According to Credit Suisse, "one" cathode manufacturer is said to have cut production.Excerpt :
"Wuxi Li Carbonate futures fell -7% on speculation in China that a major cathode producer may have cut production targets,
and some Chinese companies forecast a market slowdown later in 2023," said Saul Kavonic, an analyst at Credit Suisse.
The golden Saxons, on the other hand, believe :
Goldman Sachs reiterated its bearish views on lithium earlier this week, with the view that supply will start to outstrip demand in 2023.
To Credit Suiss :
It may well be that "A" cathode producer in China has cut production, but I am missing the "WHY" here!
If we keep in mind the tax benefits for America-First could not be the reason to be found in it?
China is now on the undesirable list of the United States and that is a reason for the production cuts and in connection with the Chinese zero-covid-idiot strategy, which has not worked so far and will not work in the future,will have contributed to the production cut??
To Goldman Sachs :
Ridiculous! Simply ridiculous!
Neither Fastmarkets nor from Bare Minerals is comparable to hear, but, again and again only the lack of lithium, which drives the prices steadily upward.
Where should the 1 million tons come from, which Goldman Sachs sees as additional material?
Will we be supplied by Elon Musk's space fleet?
Has the lithium been found in the Metavers?
Conclusion :
It is time that disallowed supervision times the bundle of the panic spreaders times rein and muzzle gives!
Which companies should please beautiful, because suddenly so in production go and these 1 million tons additionally supply?
Here, Credit Suisse and Goldman Sachs have probably built up decent short positions and now cashed in strongly?
Congratulations you future-preventers.
Expand